The number of taxpayers reporting foreign assets and income rose significantly in the financial year 2023-24. According to the finance ministry, 2.3 lakh individuals declared such assets in their income tax returns. This marks a sharp 45% increase compared to the previous year.
Recent media reports mentioned that deposits in Swiss banks reached 3.5 billion Swiss Francs, equal to about Rs 37,600 crore. The ministry clarified that this total includes funds from companies, banks, and individuals. It added that not all deposits in Swiss banks belong to Indian residents.
The government has been receiving financial details about Indian residents under the automatic exchange of information framework. This data includes details of bank accounts that may be linked to tax evasion or other irregular financial activities.
The Central Board of Direct Taxes (CBDT) is actively using this information to review taxpayer compliance. It is matching the data with the income tax returns filed by individuals. When discrepancies are found, the department follows up with further checks and actions.
These follow-ups include detailed reviews, open enquiries, and even search and seizure operations when needed. As a result of these actions, the CBDT asked for a review of 24,678 taxpayer returns.
Of these, 5,483 individuals later filed revised or late returns. These filings revealed foreign assets worth Rs 29,208 crore. Additionally, they disclosed Rs 1,090 crore in foreign income that was not reported earlier.
The finance ministry emphasized that this increase in reporting is due to better monitoring and data exchange with other countries. It also credits improved compliance measures and growing awareness among taxpayers.
Tax experts say this trend shows a shift towards more transparency in overseas income and asset reporting. The rise in disclosures may also reflect taxpayers’ concerns about penalties for hiding foreign wealth.
India has signed multiple agreements for automatic exchange of financial information with various countries. This allows the tax department to get details about Indian citizens holding accounts or investments abroad.
The government plans to continue its strict monitoring of such accounts. Officials say this will help stop tax evasion and ensure everyone pays their fair share. The CBDT will keep using all tools available, including digital tracking and international cooperation.
As global financial systems become more connected, Indian authorities are placing more focus on international financial transparency. This also aligns with global efforts to curb tax evasion and ensure that hidden income is brought to light.
The increase in foreign asset reporting is seen as a positive sign for tax compliance. It indicates that more people are aware of their legal responsibilities and are willing to follow the rules.
The finance ministry believes that ongoing steps to detect hidden assets will continue to produce results. By combining data from foreign banks with domestic filing records, the department hopes to close gaps and recover unpaid taxes.
As the process continues, more individuals are expected to come forward and declare foreign holdings. The goal is not just to collect revenue, but to build a fair and equal system where everyone contributes.
